Cheapest IPI
Finding the cheapest income protection insurance will give you the financial protection you need to cope with a prolonged loss of income. If you are unable to work because of an accident or illness that leaves you physically disabled, IPI will pay out a percentage of your earnings until you are able to work again, or until your coverage period ends. You can reduce the cost of IPI by comparing quotes from several insurance providers before you purchase a policy, and by taking advantage of opportunities to get the cost down.
When you purchase IPI, you may choose the option to have your premium payments waived during a period of unemployment. This option will allow you to dedicate all of your tax free payouts to keeping up mortgage repayments and paying for groceries, utilities and other priority expenses. IPI benefits, when combined with other sources of financial support, can help you avoid the severe consequences of a loss of income, such as arrears, a County Court Judgment, an eviction or home repossession.
Income Protection Options
Over the course of your career, you may require income protection for 30 years or more. If you depend on your earnings to cover your daily household expenses, your need for IPI may continue for as long as you are earning a salary. When you compare policies to find the cheapest IPI, consider not only the cost of your premiums over the next few years, but over the course of your working life.
Fixed premium IPI is the most common form of income protection insurance. With a fixed premium policy, you pay set premiums throughout the coverage period. At the end of this period, your policy may be renewed at a higher rate, dependent on your health and occupational status. Renewable and reviewable IPI are cheaper than fixed premium IPI at the beginning of your coverage; however, your rates may increase with each renewal period, especially if you have had a change in health status or have taken up a high risk occupation.
Increasing IPI and index linked IPI are two variations of income protection that offer increasing value over the course of your cover. With increasing IPI, the amount of your payouts increases at certain intervals to accommodate the effects of inflation. With index linked IPI, a percentage of your premium payments is invested in your insurance company's stocks or shares, which may earn profits over time and maximize the value of your IPI benefits.
Reducing the Cost of IPI
Shopping around for quotes from a number of insurance providers will help you get the best deal on income protection insurance. Although every insurance provider will request certain details when you complete an application, such as your age, health status, occupation and the amount of cover you require, not all insurers will charge the same prices for cover. By comparing a number of quotes online, you can determine which policy offers the most value for your money.
You may receive a discount on IPI if you are a member of a certain bank, building society, trade association or club. If your employer offers IPI as a benefit of employment, you may save money by purchasing insurance at the group rate. However, if you suffer a permanent job loss, IPI benefits may no longer apply.
The cheapest IPI is the policy that will cover your income for as long as you require at the lowest overall price. The lowest premiums do not always translate into the lowest prices over the course of your cover. Calculate the total cost of your cover to decide which approach will save you the most money over time.
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This site let me compare a huge selection of quotes almost instantly, so I knew that I was getting the best deal on income protection insurance.
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